The massive Sunnyvale real estate deal has given new hope that the Silicon Valley commercial office space market could begin to recover after being completely turned upside down by displacement from home during the pandemic. The large, modern office building currently leased by Nokia has been purchased by a well-known Bay Area real estate firm.
In accordance with Mercury News, a subsidiary of GI Partners, appears to have paid $ 254 million for a newly built building at 520 Almanor Avenue in Peary Park, Sunnyvale. Nokia occupies the entire 230,000 square foot building that was designed by Lane Partners.
“We are delighted to have completed the project and successfully dealt with the COVID-19 pandemic. We went to the other side of the pandemic with a great building and a great tenant at Nokia, ”Nick Menchel of Lane Partners told Mercury News. The building is priced at around $ 1,100 per square foot, which analysts say offers good prospects for the Silicon Valley office space market.
David Sandlin of commercial real estate firm Colliers told Mercury News: “The deal shows that people believe the office real estate market will return to Silicon Valley. This deal is a testament to the resilience of the Silicon Valley office market. ”
In accordance with Silicon Valley Business MagazineThe space under the building, which was sold, is owned by Pace Properties and includes approximately 7,000 square feet of outdoor terrace as well as approximately 4,000 square feet of retail space or a café. It is not yet clear whether potential tenants are lining up on the ground floor area.
The Peary Park area in Sunnyvale has seen a resurgence of recent real estate developments after three major moves. Apple, along with other tech firms Proofpoint and Synopsys, are now leasing large office space in the area.